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.May 05, 2004
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This Week:

• Two Vintage Chrysler Roadsters to Race in Historic Mille Miglia

• GM Delivers The World's First Full-Size Hybrid

• Toyota Prius Engine Safety in the Event of an Accident

• Rolls-Royce 100-Year Anniversary

• BMW Group Makes Good Start To Year 2004

• Porsche(R) Cayenne(R) Gets Six-Speed Manual Gearbox

• Jaguar and Land Rover North America Announce Executive Appointments

• On the road to success: Passat with diesel particulate filter increases market share

• Nissan North America Reports April Sales

• Chinese Government Commission Approves Production of Mercedes-Benz Sedans in China

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Chinese Government Commission Approves Production of Mercedes-Benz Sedans in China
 

Signing of strategic framework agreement between DaimlerChrysler and Beijing Automotive Industry Holding Company Ltd. (BAIC) Jürgen E. Schrempp again meets Chinese Premier Wen Jiabao during the latter's visit to Berlin Production launch of Mercedes-Benz C-Class and E-Class sedans now within reach Berlin/Beijing - During Chinese Premier Wen Jiabao's visit to Germany, DaimlerChrysler AG and Beijing Automotive Industry Holding Company Ltd. (BAIC) signed a project proposal to manufacture Mercedes-Benz C-Class and E-Class sedans in China. The vehicles will be produced in a new facility in Beijing with an initial annual production capacity of 25,000 vehicles. After the compliance of the Chinese National Development and Reform Commission (NDRC), this decision marks an important step in the approval process for the planned production of Mercedes-Benz vehicles in Beijing. Final details for this signature were clarified last week when DaimlerChrysler Chairman Jürgen E. Schrempp was in Beijing.

"Establishing a manufacturing presence for Mercedes-Benz passenger cars in China is a key part of our Asia strategy, and further complements our activities in the Chinese market," said Professor Schrempp, who had a personal meeting with the Chinese premier during a visit to Berlin. "Twenty years ago we were the pioneers in China, establishing the first joint venture for automobile production between an international and a Chinese partner at Beijing Jeep. In the future, our intensified involvement in China will help ensure that we take even better advantage of the many business opportunities in the world's fastest-growing automotive market."

Schrempp first met the Chinese premier in Beijing in September 2003 when the Company signed a Euro 1 billion framework agreement with BAIC. The aim of this agreement is to expand the existing Chrysler business activities to include the production of Mercedes-Benz passenger cars, to restructure and relocate Beijing Jeep and to expand production of commercial vehicles.

"The approval of local production represents a key step in the process of expanding the presence of the premium brand Mercedes-Benz in China," said Professor Jürgen Hubbert, DaimlerChrysler AG Board of Management Member responsible for the Mercedes Car Group. "This is also an expression of our close relationship with our partner BAIC and the tremendous importance of these business relations for the Group."

The framework also includes the cooperation of DaimlerChrysler with Beiqi Foton Motor Corporation Ltd., in which BAIC is the major shareholder, to produce heavy and medium-duty trucks, engines and components at Beiqi Foton's manufacturing facility in Beijing.

Last year, the National Development and Reform Commission had already approved a separate Euro 200 million project proposal to produce Mercedes-Benz Sprinter and Vito/Viano vans in a new facility in Fuzhou City, Fujian Province, which will be jointly operated by DaimlerChrysler, Fujian Motor Industry Group from Fujian, and China Motor Corporation from Taiwan. Beginning in 2006, this plant will have the capacity to produce 40,000 vans a year.

"DaimlerChrysler is the only international automaker able to produce both commercial vehicles and passenger cars in China. Moreover, the company has managed to combine the activities of all of the DaimlerChrysler brands and create a uniform image in this important growth region," said Dr. Rüdiger Grube, Board of Management Member responsible for Corporate Development.

DaimlerChrysler has a long history in China and Mercedes-Benz has been present in the country for more than 60 years. DaimlerChrysler's joint venture with BAIC to create Beijing Jeep Corporation (BJC) in 1983 was the first automotive manufacturing joint venture established in China.

In 2003, DaimlerChrysler sold more than 33,000 automobiles in China and Hong Kong, of which more than 12,000 were Mercedes-Benz passenger cars. More than 135,000 Mercedes-Benz vehicles are on the streets of China today.

(May 03, 2004)